Gold Savings Account: Are You Ready?

Many people are looking for a gold savings account or gold savings fund where they can invest in gold instead of putting money in a traditional bank. It pretty obvious that money put in a gold savings account will grow faster than money put in a traditions savings account or even a time deposit or CD account.

Before you decide on a gold savings account you should consider the following ideas to give you a better perspective of what investing in gold means.

Gold Savings Account Advantages

Ready for a Gold Savings Account?

You can see right off the bat that the big advantage of a gold savings account is that your investment grows as the price of gold grows. On average, this is about 16% to 19% per year. That’s a lot faster than a 5-year CD with an annual percentage yield of about 2.25%.

Of course, in the short term the price of gold goes up and down. If you are looking for a safe investment for the short term, you would be wise to put your money in the bank. Investing in gold is a long term strategy with a comfort level that won’t have you looking in the paper every day to determine the current spot price of gold.

The second advantage of a gold savings account is that you can deposit money when it’s convenient in whatever amount you have. There are no minimums. Some CDs, for example, have a minimum balance of $1000 or $2500. So, a gold savings account is more flexible.

While it would be wise to invest a little every month, you do not need to do so. This adds to the flexibility of a gold savings account.

A third major advantage to a gold savings account is that you can buy and sell gold or silver at any time. You have access to your account 24 hours a day and can add to or remove money from you account at any time. Funds from sales will normally arrive in your bank account the next working day. While you can often add money to a CD, there may be some loss of principle if you cash in your CD before it matures.

Gold Savings Account Disadvantages

While gold has been a universal standard of value for thousands of years, nobody guarantees the value of gold. Because governments are creating more of their respective currency at ever faster rates, we expect the value of these currencies to decline over time. This means that the price of gold should increase when measured against these currencies. But, there are no guarantees. So, gold is an investment like any other investment. It’s price is not guaranteed.

To put in another way: gold’s value is not insured by the FDIC. It is a commodity and it’s price depends on the current value of the currency used in valuing the gold. While currencies rise and fall in value every day, the long term trend for currencies (what governments call “money”) is to become less valuable. That means that the price of gold should rise over time.

This means that if you are going to need to withdraw a large portion your money in the short term, a gold savings account may not be the place to park you money.

Where Can You Get a Gold Savings Account?

There are several mutual funds that invest in other funds (Gold ETFs) that closely track the price of gold. These are one option.

Another option is to deal with a recognized international gold bullion dealer. You can deposit funds and buy and sell gold or silver. Your gold or silver bullion can be stored in the dealer’s secure and insured vaults or you can take delivery of your bullion. You have access to your account 24 hours a day so you can transact business when it’s most convenient for you.

One of the dealers we believe is reputable is the “Bullion Vault” that offers a gold savings account you can set up for free. They manage over a Billion dollars worth of gold in the US, Switzerland and the UK. And, your gold or sliver is stored on your own allocated shelf space (in what are termed segregated accounts) in their secure and insured vaults for added safety.

If you are interested in a gold savings account you can set up your account for free today.

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